Published Friday, February 10, 2023 by Alan Holdren

Two issues that are sometimes little know outside of the collection world are Validating a Debt and Disputing a Debt. I will hope to put a little information in your hands as to what each is and what constitutes complying with the requirements of both.

Validating a Debt is the act of a debt collector making sure the correct amount and debtor is being approached a particular debt. In simple terms these rules are in place within the Fair Debt Collection Practices Act (FDCPA) to make sure the collector has their “ducks in a row” when they are asking for money from a person. The person, amount and verbiage informing the debtor of their intentions and options the debtor has must be contained in the initial letter. Sec 809 of the FDCPA will help also in figuring these areas out if you have further interest.

Disputing a Debt follows under this same Sec 809 of the FDCPA states that a debtor has 30 days from receipt of the Validation Notice to dispute the debt in writing. We hear this almost everyday at Atlas that somebody is disputing our debt and they want it on the record. We, as most will, note this, but we tell them they must dispute it in writing for us to take any further action to comply and provide additional proof of the debt. Stalling tactics is usually what they are trying to use. Upon receipt of a written dispute, we must obtain and provide verification of the debt or a copy of the judgment that created the debt and provide a copy to the debtor. Most of the time agencies or attorneys will already have this information upon receipt of the debt. If we cannot get a copy of the information that created the debt, we must either cancel the account or file suit.

I am to believe that most collection groups conform to this if not they would be getting sued everyday. With the restrictions placed upon this area we at Atlas play this very close to the vest and make sure all T’s get crossed and I’s dotted.